Dollar skyrockets to 5-month high against dong

By Dat Nguyen   August 3, 2023 | 12:29 am PT
Dollar skyrockets to 5-month high against dong
An employee counts U.S. banknotes at a bank in Ho Chi Minh City. Photo by VnExpress/Thanh Tung
The U.S. dollar on Thursday continued its rally against the Vietnamese dong, reaching the highest level since Feb. 28.

Vietcombank sold the dollar at VND23,930, up 0.15% from Wednesday.

The State Bank of Vietnam raised its reference rate up 0.13% to VND23,803.

The dollar gained 0.17% to VND23,760 on the black market.

The dollar has gained over the dong by 0.84% since the beginning of the year.

Globally the dollar hit a four-week top against its major peers on Thursday, shrugging off a U.S. credit rating downgrade that cast doubt on the country's fiscal outlook, and instead got a leg up from strong private payrolls data, Reuters reported.

The euro fell 0.09% to $1.0928, while the U.S. dollar index scaled a four-week peak of 102.82, extending the previous session's 0.5% gain.

Yields on U.S. Treasuries also stayed elevated on the prospect of higher for longer U.S. rates, with the benchmark 10-year Treasury yield hitting a near nine-month high of 4.1360%.

"Strong ADP numbers, insofar as it is taken to be a gauge of non-farm payrolls, ostensibly invoked a good deal of upside in U.S. Treasury yields and the U.S. dollar," said Vishnu Varathan, head of economics and strategy at Mizuho Bank.

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